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Fair Values (Tables)
 6 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Schedule of assets and liabilities recorded at fair value on a recurring and non-recurring basis
The following fair value hierarchy table summarizes the Company's assets and liabilities recorded at fair value on a recurring and non-recurring basis by the above categories ($ in thousands):
 
 
 
Fair Value Using
 
Total
 
Quoted market
prices in
active markets
(Level 1)
 
Significant other
observable
inputs
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
As of June 30, 2018
 
 
 
 
 
 
 
Recurring basis:
 
 
 
 
 
 
 
Derivative assets(1)
$
8,120

 
$
—

 
$
8,120

 
$
—

Derivative liabilities(1)
1,150

 
—

 
1,150

 
—

Available-for-sale securities(1)
21,840

 
$
—

 
$
—

 
21,840

Non-recurring basis:
 
 
 
 
 
 
 
Impaired real estate(2)
5,632

 
—

 
—

 
5,632

Impaired land and development(3)
8,873

 
—

 
—

 
8,873

Debt security(4)
77,007

 
—

 
—

 
77,007

 
 
 
 
 
 
 
 
As of December 31, 2017
 
 
 
 
 
 
 
Recurring basis:
 
 
 
 
 
 
 
Available-for-sale securities(1)
$
22,842

 
$
—

 
$
—

 
$
22,842

Non-recurring basis:
 
 
 
 
 
 
 
Impaired real estate(5)
12,400

 
—

 
—

 
12,400

Impaired real estate available and held for sale(6)
800

 
—

 
—

 
800

Impaired land and development(7)
21,400

 
—

 
—

 
21,400


____________________________________________________________
(1)
The fair value of the Company's derivatives are based upon widely accepted valuation techniques utilized by a third-party specialist using observable inputs such as interest rates and contractual cash flow and are classified as Level 2. The fair value of the Company's available-for-sale securities are based upon unadjusted third-party broker quotes and are classified as Level 3.
(2)
The Company recorded an impairment on a net lease asset with a fair value of $5.6 million due to the exercise of a below-market lease renewal option related to a net lease asset.
(3)
The Company recorded an impairment on a land and development asset with a fair value of $8.9 million based on market comparable sales.
(4)
In connection with the resolution of a non-performing loan, the Company received a preferred equity position with a face value of $100.0 million that is mandatorily redeemable in five years. The Company recorded the preferred equity position at its fair value of $77.0 million based on a discount rate of 7.375%.
(5)
The Company recorded an impairment on a real estate asset with a fair value of $12.4 million based on market comparable sales.
(6)
The Company recorded an impairment on a residential real estate asset available and held for sale based on market comparable sales.
(7)
The Company recorded an impairment on a land and development asset with a fair value of $21.4 million based on a discount rate of 6% and a 10 year holding period.
Summary of changes in Level 3 available-for-sale securities reported at fair value
The following table summarizes changes in Level 3 available-for-sale securities reported at fair value on the Company's consolidated balance sheets for the six months ended June 30, 2018 and 2017 ($ in thousands):
 
 
2018
 
2017
Beginning balance
 
$
22,842

 
$
21,666

Repayments
 
(46
)
 
(10
)
Unrealized gains (losses) recorded in other comprehensive income
 
(956
)
 
566

Ending balance
 
$
21,840

 
$
22,222